The Euro-medium-term-note (EMTN) has filled a substantial niche market in global financing. What are the distinguishing characteristics of the EMTN and why is it such a popular form of financing for MNEs?
What will be an ideal response?
EMTNs have maturity between the long-lived international bonds and the short-term Euro-commercial paper, thus they have an appealing time horizon to many investors. EMTNs are like international bonds in that they pay periodic interest. The distinguishing features of an EMTN are: They are similar to a shelf registration in that the entire order for the securities does not have to be issued on the same day. Coupon payments are paid continuously, and the relatively small denominations allow for some flexibility in the market.
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Indicate whether the statement is true or false
The advantage of building up inventory during the off season to meet demand during peak seasons and keep production stable year round is
A) very low inventory costs because no inventory needs to be carried from period to period. B) much of the expensive capacity would go unused during most months when demand was lower. C) in the fact that a firm could get by with a smaller, less expensive factory. D) in the fact that a firm could get by with a larger, more expensive factory.